What costs should I ask about before buying a mattress store franchise?
Before buying a mattress store franchise, ask about the cost lines that are particular to the trade: display beds and how often they must be refreshed, delivery and removal of old mattresses, returns and exchanges, the advertising fund, and the showroom lease. Ask for each in writing, with how and when it is charged.
The headline numbers in a franchise offering may not tell a buyer what the store costs to run month by month. A mattress showroom has recurring costs that a clothing or food franchise does not. Writing them down line by line, with the seller’s actual records beside the franchisor’s figures, lets you compare what the store really spends with what you were told.
Display beds and showroom costs
Ask how many display beds the store needs, who owns them and how often the franchisor or supplier expects them to be refreshed. Then ask about the showroom lease: its term, renewal rights and whether the size suits the appointment model. A small showroom can lower rent, so check when the lease ends and what renewal terms it offers.
Delivery, removal and returns
Many customers expect delivery, set-up and removal of the old mattress. Ask who performs it, what it costs the store and whether customers are charged. Ask how exchanges and returns are handled, what the supplier covers and what the store absorbs. A policy that looks generous in the brochure can quietly reduce what the owner keeps. The seller’s records show what happened in practice.
Fees paid to the franchisor
Ask about every fee that goes to the franchisor: ongoing royalties, the advertising fund, technology charges, training and any transfer fee on a resale. Ask what the advertising fund pays for and whether it produces bookings in your area. Our guide to comparing franchise costs shows how to line these up across brands.
- Display bed replacement and who owns the beds.
- Delivery, set-up and old-mattress removal.
- Returns, exchanges and warranty handling.
- Advertising fund, royalties and technology charges.
- Lease terms for the showroom.
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Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernment5 tips to finance a franchise purchase
- 02Canadian Franchise AssociationIndustryInterested in Buying a Franchise?
- 03Canadian Franchise AssociationIndustryFranchise Disclosure Legislation across Canada
- 04Business Development Bank of CanadaGovernmentWhat is inventory
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